Scandal-plagued auditing firm KPMG have been dumped by Macquarie Group after its board voted it would no longer recommend the organisation as its preferred auditor.

Monday’s sackings were concentrated in the firm’s consulting division, but the scandal originated with senior staff in the auditing section.

KPMG Australia has asked its parent company for financial support and laid off hundreds of staff after an audit scandal rocked the Big Four firm's business down under.